Sri Lanka’s sole agent and dealer of Volvo cars and products, the Swedish Trading Company Ltd. has gone in to legal action against Volvo Car Corporation on 24 February seeking to prevent the company from appointing any other party other than Swedish Trading Company Ltd. as its agent, distributor or partner in Sri Lanka following several attempts to ensure that Volvo Car Corporation honours its obligations arising from the contracts between both parties.

Swedish Trading stated that it has functioned as the sole agent and dealer for Volvo Car Corporation in Sri Lanka for over 30 years and is responsible for current development and reputation of the Volvo brand in Sri Lanka and that it cannot end this agency.

After hearing the submissions High Court judge Aruna Ranasinghe issued an Enjoining Order on 2 March restraining Volvo Car Corporation from appointing any party other than Swedish Trading Company Ltd. as its agent, distributor or partner in Sri Lanka.